In response to the rapidly evolving landscape of the logistics sector, characterized by an increase in the value addition of logistics, the integration of advanced systems, and the proliferation of borderless e-commerce, Incheon International Airport is steadfast in its commitment to enhancing logistics services. Its core value is customer satisfaction, fostering trust through a myriad of initiatives that focus on symbiotic growth with clients.
Enhancing Customer Convenience through Diverse Infrastructure
Currently, the Incheon International Airport’s Free Trade Zone encompasses an airport logistics complex and cargo terminal area, promising a more competitive environment to customers through streamlined customs procedures, duty-free benefits, and a variety of incentives.
Tenants can enjoy the freedom associated with manufacturing, logistics, and trade activities, complemented by benefits such as affordable rental rates and deferred customs duties. The logistics complex and the cargo terminal area within the Free Trade Zone are directly connected, facilitating seamless exchanges without the need for separate transportation procedures. This connection supports value-added logistics activities through mechanisms like straightforward processing, assembly, and use consumption declaration, thereby actively adapting to the global business environment.
Currently, the cargo terminal houses eight cargo buildings, three air cargo warehouses, four special-purpose processing facilities, and two customs bonded areas, collectively forming a significant logistics hub.
Simultaneously, Incheon International Airport is advancing towards the development of future-oriented cargo terminals and autonomous cargo towing technologies. These innovations aim to elevate the efficiency and streamline the operations further. Through these developments, the airport plans to upgrade the caliber of logistics services provided to its customers significantly.
Incheon International Airport plans to spearhead the global aviation logistics technology sector by adopting new technologies such as AI and robotics. These technologies aim to minimize the costs and time involved in cargo operations, boosting productivity substantially. Furthermore, the airport is in the process of establishing new ground operation protocols and promoting the digital transformation of the air cargo industry, to position itself as a leader in the sector.
Moreover, Incheon International Airport is committed to expanding transportation options to enhance customer convenience. Plans are underway to support new transportation means, including buses, to supplement the existing transportation facilities, ensuring easy and efficient access to the logistics complex for clients.
Collaborative Marketing Initiatives with Clients
Incheon International Airport is ramping up efforts to enhance the marketing activities of its client companies. An initiative in this direction was the ‘Joint Information Session to Boost Air Cargo Volume in the Vietnam Region’ organized in collaboration with Jeju Air. The session, which took place over two days from May 31st to June 1st, in Hanoi and Ho Chi Minh City, Vietnam, targeted local logistics personnel and aimed to foster an increase in air freight traffic in the region.
This event was strategically planned as a part of the ongoing ‘Air Cargo Incentive Program’, spearheaded by Incheon International Airport to amplify air cargo traffic volumes. Spanning two days, the event attracted a significant response, with about 61 companies from the Vietnamese forwarding and logistics sectors, and approximately 150 representatives in attendance.
Building on the success of this event, Incheon International Airport plans to hold a joint briefing with FedEx later this year, in addition to rolling out online marketing campaigns with China Airlines and UPS. Looking ahead, the airport intends to expand its collaborative marketing efforts, fostering continuous dialogue and partnerships with a broader spectrum of clients.
Efforts to Increase Cargo Traffic Through Customized Support for New Growth Cargo
Incheon International Airport is diligently working to amplify cargo traffic, with a significant emphasis on supporting sectors witnessing new growth, in a bid to enhance cargo movement volumes.
Notably, the airport has recently acquired the distinction of being the world’s first to secure CEIV certification in three burgeoning sectors: perishable goods, pharmaceuticals, and lithium batteries. The airport is actively offering support to increase cargo traffic in these sectors through engagements with relevant companies, facilitating dialogues to understand customer needs and deploy tailored support initiatives.
In the perishable goods sector, collaborations are underway with organizations such as the Korea Agro-Fisheries & Food Trade Corporation (aT) and the Korea Trade-Investment Promotion Agency (KOTRA). In the pharmaceutical domain, the airport is liaising with prominent companies such as <Celltrion> and <Samsung Biologics> to develop efficient logistics and transportation processes. In addition, plans are underway for a potential collaboration with the KoBIA (Korea Biomedicine Industry Association).
Furthermore, Incheon International Airport is intensifying promotional activities in the realms of perishable goods, pharmaceuticals, lithium batteries, and e-commerce. The airport is ramping up marketing efforts, utilizing both online and offline channels, to reach a global audience, fostering trust among customers. Through these diverse initiatives, Incheon International Airport aims to steadily increase cargo traffic within the new growth sectors.
Partnering with Global Logistics Companies
Incheon International Airport is strengthening its infrastructure through alliances with global logistics companies, fostering mutual growth with clients.
Recently, the airport pledged to intensify its collaboration with FedEx, the leading airline in air cargo handling worldwide.
Representatives from Incheon International Airport recently introduced FedEx executives to their air cargo operations during a visit. During his inaugural visit to Korea since taking office, FedEx President Richard Smith demonstrated considerable interest in the exceptional air logistics infrastructure and services available at Incheon International Airport.
With FedEx considering business expansion in the Asia-Pacific region, discussions focused on potential strategies for leveraging Incheon International Airport as a major hub to attract greater air cargo demands.
In addition, the FedEx executive team toured the exclusive FedEx cargo terminal, newly inaugurated in October 2022. This establishment was created using the BTS (Build-to-Suit) model and is presently leased. This model involves the airport constructing the cargo terminal while operations are handled by the lessee. This large-scale collaborative project saw investments of 53.5 billion KRW from Incheon International Airport and 40.5 billion KRW from FedEx.
Moreover, Incheon International Airport announced the completion of the DHL cargo terminal expansion last year, marking the commencement of its full-scale operations.
DHL has operated a cargo terminal at Incheon International Airport since 2007. The recent expansion has enlarged the facility to three times its original size, now spanning 58,000 square meters, up from 19,000 square meters.
Not only has the facility expanded, but it has also integrated modern logistics systems, significantly reducing the time needed to handle import and export cargoes. The number of express cargoes processed per hour has significantly increased from 8,100 to over 20,000, promising to substantially boost cargo throughput at Incheon International Airport. DHL anticipates heightening its influence at Incheon International Airport following this expansion.
Furthermore, Incheon International Airport continues to cultivate relationships and collaborations with global logistics firms, promoting reciprocal growth.
Lee Hak-Jae, the President of Incheon International Airport, emphasized, “Incheon International Airport remains dedicated to continual collaboration with international logistics corporations, striving to augment infrastructure and thereby solidify its position as a pivotal logistics hub in Northeast Asia.”